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Interaction among productivity and financial performance of people's credit funds in Vietnam

Interaction among productivity and financial performance of people's credit funds in Vietnam This study's purpose is to discover the interaction relationship between productivity and financial performance of people's credit funds (PCFs) in Vietnam. After regression analysis on a set of panel data from 2013 to 2018 of 24 selected PCFs in Vietnam, it appeared that the age of PCFs and productivity have positive relationships with financial performance; the credit growth rate and non-performing loan ratio have negative relationships with financial performance. The debt-to-loan ratio has a positive relationship with return on equity, but it has a negative relationship with return on assets. The equity growth rate, deposit, debt-to-loan ratio, return on assets have positive relationships with productivity. The depth of outreach, loan-to-deposit ratio, return on equity and non-performing loan ratio have negative relationships with productivity. The study found the bidirectional interactions between productivity and financial performance. Through the findings, this study helps managers understand the key determinants for better management of PCFs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Services, Economics and Management Inderscience Publishers

Interaction among productivity and financial performance of people's credit funds in Vietnam

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
1753-0822
eISSN
1753-0830
DOI
10.1504/IJSEM.2021.119907
Publisher site
See Article on Publisher Site

Abstract

This study's purpose is to discover the interaction relationship between productivity and financial performance of people's credit funds (PCFs) in Vietnam. After regression analysis on a set of panel data from 2013 to 2018 of 24 selected PCFs in Vietnam, it appeared that the age of PCFs and productivity have positive relationships with financial performance; the credit growth rate and non-performing loan ratio have negative relationships with financial performance. The debt-to-loan ratio has a positive relationship with return on equity, but it has a negative relationship with return on assets. The equity growth rate, deposit, debt-to-loan ratio, return on assets have positive relationships with productivity. The depth of outreach, loan-to-deposit ratio, return on equity and non-performing loan ratio have negative relationships with productivity. The study found the bidirectional interactions between productivity and financial performance. Through the findings, this study helps managers understand the key determinants for better management of PCFs.

Journal

International Journal of Services, Economics and ManagementInderscience Publishers

Published: Jan 1, 2021

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